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Rational Expectations Estimation of Georgia Soybean Acreage Response

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  • Ahouissoussi, Nicolas B. C.
  • McIntosh, Christopher S.
  • Wetzstein, Michael E.

Abstract

The general method of moments procedure is used for estimating a soybean acreage response function assuming that producers hold rational expectations. Results indicate that soybean, corn, and wheat futures prices, lagged acreage, and government programs are significant factors for determining soybean plantings. Implications of the results are that crop acreage selection by Georgia producers is not very responsive to demand shocks. Thus, producers in other regions are more likely to absorb impacts from these shocks on crop acreage selection.

Suggested Citation

  • Ahouissoussi, Nicolas B. C. & McIntosh, Christopher S. & Wetzstein, Michael E., 1995. "Rational Expectations Estimation of Georgia Soybean Acreage Response," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 27(2), pages 500-509, December.
    • Handle: RePEc:cup:jagaec:v:27:y:1995:i:02:p:500-509_02
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    Cited by:

    1. Smith, Elwin G. & Young, Douglas L., 2000. "Cropping Diversity And Farm Programs," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36505, Western Agricultural Economics Association.
    2. Elwin G. Smith & Douglas L. Young, 2003. "Cropping Diversity along the U.S.-Canada Border," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(1), pages 154-167.
    3. Bachewe, Fantu Nisrane & Taffesse, Alemayehu Seyoum, 2015. "Dynamic supply response of farm households in Ethiopia," ESSP working papers 78, International Food Policy Research Institute (IFPRI).

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